Volkswagen Wakes Up to Reality

Volkswagen CEO Oliver Blume is finally starting to sound like a man who realizes his ship is heading straight for an iceberg. In an interview with Süddeutsche Zeitung, he admitted candidly, “We rested on our laurels for too long.” For decades, Volkswagen’s business model was simple and comfortable: build in Germany, export everywhere. But the world changed, and Volkswagen got stuck in the shadow of past victories.

Blume acknowledged that today’s auto market is driven by electric vehicles and software — and it’s precisely in software where Volkswagen is struggling massively. German precision has turned into German malfunction. To get serious about fixing it, Volkswagen plans to cut 35,000 jobs before 2030.

On the matter of China’s manufacturing dominance, Blume kept his lips sealed, but the winds were easy to read. At the same time, Volkswagen is doing everything it can to stay afloat in the US market. Trump-era tariffs haven’t done them any favors; German-made cars are growing more expensive and less appealing in America. Still, Blume stressed they are in “honest and constructive” talks with the US Department of Commerce.

Volkswagen already employs 55,000 people in North America and is teaming up with local player Rivian. Blume’s belief is simple: if you invest in a country, you should get better terms in return. Whether this is a genuine strategy or a desperate bid for survival, one thing is clear: Volkswagen can no longer count on past glory to carry it into the future. Because if the engine doesn’t start, even the finest badge won’t take you far.